Since 2019 the Welsh Parliament has set the Welsh rates of Income Tax. For 2026/27 those rates match the rest of England and Northern Ireland, so Welsh taxpayers pay 20%, 40% and 45% — see your income split band by band.
Wales · 2026/27
Income Tax for people living in Wales is partially devolved. The UK Government cuts each main Income Tax rate by 10 pence in the pound for Welsh taxpayers, and the Welsh Parliament then sets a Welsh rate to add back on top. In every year since the system began, the Welsh rate has been set at 10p — so the combined rates exactly match the rest of England and Northern Ireland.
| Band | Taxable income (2026/27) | Rate |
|---|---|---|
| Personal Allowance | £0 – £12,570 | 0% |
| Basic rate | £12,571 – £50,270 | 20% |
| Higher rate | £50,271 – £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
On a £50,000 salary, a Welsh taxpayer pays:
The same reliefs that work across the UK apply in Wales: pension contributions, Gift Aid and Marriage Allowance all reduce or shift your taxable income. Pension contributions are the strongest lever around the £50,270 and £100,000 thresholds — model them with the field above or the pension contribution calculator.
No — for 2026/27 the Welsh rates of Income Tax are set at the same level as England and Northern Ireland: 20% basic, 40% higher and 45% additional. The Welsh Parliament could change them, but so far it has kept them aligned, so a Welsh taxpayer pays the same Income Tax as someone on the same salary in England. This is different from Scotland, which has its own six bands.
Income Tax for Welsh residents is split into a UK part and a Welsh part. The UK Government reduces each main rate by 10p and the Welsh Government adds its own Welsh rate back on top. For every year so far the Welsh rate has been set at 10p, which means the combined rates equal the rest-of-UK rates of 20%, 40% and 45%.
You pay Welsh Income Tax if your only or main home is in Wales for most of the tax year. HMRC identifies Welsh taxpayers from their address and issues a tax code beginning with the letter 'C' (for Cymru). The Welsh rates apply to wages and pensions, but savings and dividends are taxed at UK-wide rates.
Yes. The Personal Allowance (£12,570) and its withdrawal above £100,000 are set UK-wide, so they apply to Welsh taxpayers in exactly the same way. Between £100,000 and £125,140 you lose £1 of allowance for every £2 earned, creating the same roughly 60% effective marginal rate seen across the UK.